"This restructuring underscores our commitment to India's broadband transformation. We enjoy a distinct and formidable advantage of powering the digital revolution for India, and in the process, transforming millions of lives across the country. The demerger puts us in an even better position to serve our nation, and create great products and services for our customers and partners alike," Dr Anand Agarwal, CEO, Sterlite Technologies, said in a statement.
The company said that the new avatar of Sterlite Tech will deliver 'long- lasting smart networks' through its end-to-end telecom products, services and software capabilities. It will focus on technologies that suffice demand for the next generation of data broadband infrastructure.
The demerger will allow Sterlite Tech to develop sharper focus, unlock greater value for stakeholders, and strengthen its presence in the broadband infrastructure space, while the merger of Elitecore into Sterlite Tech will allow for seamless integration of two companies leading to stronger customer offerings as one -telecom entity.
On the international front, the company said that it is strengthening its existing global footprint in 75 countries and furthering its customer engagements. Through its manufacturing facilities in India, China and Brazil, Sterlite Tech claims to be a major supplier to global telcos with supply footprint across 20 countries.
Sterlite Tech has been in transformation phase for the last few years from a manufacturing play to a specialty business model straddling the entire telecom value chain by adding its presence into solutions, software and services. "This evolution of business model will substantially increase the company's addressable market size and drive improved ROCEs," the company said.
"The last few years have seen Sterlite Tech grow rapidly, and we have developed breakthrough innovations with over 100 patents. As we ready ourselves for the next big evolution, the demerger gives us a unique and compelling business model to respond t o a dynamic mark et scenario, and in the process create maxim um value for our stakeholders," Pravin Agarwal, Whole-Time Director & Vice Chairman, Sterlite Technologies, said.